Andhra electricity regulator approves power purchase from Seci for FY26

The Andhra Pradesh Electricity Regulatory Commission (APERC) has approved the purchase of over 4000 million units of power from Solar Energy Corporation of India (SECI) during the next fiscal, after the state DISCOMS have approached the regulator seeking its nod.

The SECI Power Sale Agreement (PSA) with Andhra DISCOMs became controversial after Adani Group chairman Gautam Adani was charged by the US Department of Justice over his role in a years-long scheme to allegedly pay USD 250 million bribe to Indian officials including from AP, in exchange for favourable solar power contracts of 7000 MW in 2021 when YSRCP was in power, an allegation refuted by the Indian conglomerate and also the AP opposition party separately.

According to an order by APERC on Tariff for Retail Sale of Electricity during FY 2025-26', issued on Friday, the Commission consented to the PSA with detailed reasoning subject to the outcome in the AP High Court in the pending PILs with regard to the agreement.

The Andhra Pradesh power distribution companies had decided to procure over 4,000 million units of power from Solar Energy Corporation of India out of the total 17000 MU (7000 MW) from the next fiscal.

Accordingly, the utility companies have approached the regulatory for an approval.

The SECI had earlier informed that 1000 MW will be supplied from January 15 this year onwards, 3000 MW in 2025-26 and a balance of 3000 MW in 2026-27.

According to the filings, Aggregate Revenue Requirement and Tariff Proposal for the Retail Supply Business for FY 2025-26 by Southern power Distribution company of AP Ltd (SPDCL), Eastern Power Distribution Company Of Andhra Pradesh Ltd and Andhra Pradesh Central Power distribution Corporation Ltd (CPDCL), on November 30, the utilities informed the APERC that they intend to purchase power on behalf of AP Rural Agriculture Power Limited (APRAPL).

The state government had earlier established APRAPL to channelise the solar power procured from SECI for the purpose of free supply to agriculture consumers. The entity is in the process of obtaining a license and fulfilling the other establishment activities.

According to the earlier filings, all the three Discoms have proposed to purchase 4191 million units during the next financial year.

Refuting the bribery allegations, YSR Congress Party has said the agreement was between state government, Discoms and SECI which is a central government organisation and there is no third party involvement.

AP Chief Minister N Chandrababu Naidu last month said the state government cannot scrap power purchase agreements with the SECI without obtaining solid proofs on bribery allegations.